Syndications Still Make Sense..If You Know What to Look For"

[Denise Supplee]

After several years and dozens of deals, I still believe syndications are one of the best vehicles for scalable, passive real estate investing even in today’s market.

Yes, interest rates have reshaped the landscape. But the key isn’t avoiding syndications..it's leveling up your due diligence. Strong operators, conservative underwriting, and smart debt structures still create solid returns. In fact, some of the best deals I’ve seen are happening now, quietly, while many investors sit on the sidelines.

Curious: what’s your biggest filter for saying yes to a deal right now? I’m always refining my approach and love hearing how others in this space are evolving.

[Chris Seveney]

Quote from @Michael S.:

@Denise Supplee - ok, you asked the question, so I'll give you an honest and blunt answer.

I wouldn't touch a real estate syndication in general whatsoever at present.  Maybe if I knew the GP personally, perhaps.  Otherwise, zero chance.  

The number of investors who have lost 5 to 6 figures in the past year is wild to me.  Returns are irrelevant when you lose your whole initial investment.

We've lost 5 figures on flips before.  The difference is:  we know why we lost the money, we can learn from the mistakes made, and no one else pocketed my money (not saying this happens with all syndications whatsoever, but it likely has with some of them over the years). 

Also, there is a lot of tangible value to having control of your own money.  With a syndication as an LP, you write a check, and hold on for the ride.  No thanks.  I get plenty of that either investing in the stock market or going to the amusement park with the kids (although amusement parks usually don't accept checks).  

 I think it depends on the syndicator, if you were investing in a youtube guru fund, yep you got crushed. But if you were investing in an experienced operator and / or in something diversified, you would have been fine. Not every asset type got whacked the last few years, the ones that did were the ones promising very high returns and mostly led by marketing professionals and not real estate asset managers.